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EU Pushes Tax on Bank Profits

The executive arm of the European Union is voicing support for an EU-wide tax on bank profits, saying it could help the bloc's cash-strapped governments.

The European Commission outlined a plan to tax bank profits and wages Thursday. EU Tax Commissioner Algirdas Semeta said the tax could raise $35 billion a year.

This is not the first time EU officials have proposed a tax on the financial sector.

Some members, including France and Germany, have proposed taxing financial transactions, such as sales of stocks and bonds, to help rebuild economies damaged by the global financial crisis.

Finance ministers are expected to consider the new plan at a meeting later this month.

Any EU-wide tax would require the approval of the governments of member states.

Some information for this report was provided by AP, AFP and Reuters.